In association with my right hon. Friend the Secretary of State for Scotland I make an annual grant to the Federation which has for the past six years stood at £2,500 a year. Proposals are now under consideration for substantially increasing the grant, to enable the Federation to do more towards encouraging the existing work of housing associations and in particular to assist in carrying through the special scheme to be introduced under Clause 7 of the Housing Bill now before Parliament.

The Secretary of State and I recognise the Federation as the central body for promoting the formation and extension of housing associations and for giving them advice and assistance. Our Departments, together with the other Government Departments concerned, work in close liaison with the Federation on all matters affecting the work of housing associations.